DGAM’s tail hedge returns 124% in August


Warren Wright David Hay
In a month that seems to be the worst since 2008 for funds of hedge funds and at a time when funds of funds have to keep justifying their existence, the Toronto-based team at Diversified Global Asset Management are a bit confused. To them, fund of funds differentiation is as simple as investors versus allocators. Nothing can illustrate this difference as well as a 124% return for the firm’s tail hedging strategies for the month of August 2011.

Overall, the $5.5 billion firm’s port¬folios ended between 467 and 598 basis